Deputy Prime Minister Muhyiddin Yassin will raise Sabah's cabbotage policy, which has been blamed by the industrial and commercial sectors for the high cost of goods in the state, at the next cabinet meeting.

He would recommend for a special cabinet meeting and will seek the endorsement of Prime Minister Najib Razak.

"I hope the prime minister will endorse my suggestion so that we can really study the issue and beyond.

"If a special cabinet committee is formed, which I may chair, we will get all the agencies and ministries to come on board to discuss the rules, regulations and laws as well as costs that may be involved," he said at a dinner last night organised by the Sabah Chamber of Commerce.

On turning Sabah into a regional logistics hub, the deputy prime minister said Sabah was ready to embark on the mission as the state had the ingredients to make it a reality.

However, he said the Federal and state governments needed time to work together and study the needs in developing Sabah as a logistics hub.

Meanwhile, Muhyiddin asked Federation of Sabah Manufacturers president Wong Khen Thau to prepare a working paper on setting up a logistics council to address other issues faced by the logistics industry.

He said among the issues raised was an alleged cartel involving price fixing of shipping charges.

Muhyiddin said if such allegations were found to be true, a competition commission can call for an investigation on the matter.

Fair chance

On another note, Muhyiddin said there was no reason why Sabah companies should not be given a fair chance to participate in the state's oil and gas industry.

"If there are local companies that are equally capable in operating in this industry, they should be given the opportunity.

"They may have the resources, manpower, the technology and the skills to run the business and hopefully, create the jobs for the locals," he added.

Earlier, Sabah Chief Minister Musa Aman said he feared the locals will not feel the positive impact of having a mega project like the oil and gas industry in their own backyard if many opportunities were given to companies outside of Sabah.

He said there were many Sabah local companies that had the skills and capability and were serious in taking up the challenge.

In another development, Musa announced that the state cabinet had approved a RM2 billion investment by a US company to develop red lobster and seaweed farming in Sabah.

- Bernama